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View Full Version : Is it right not to tip since employers are required to make up the difference?


ShyGuyInChicago
July 10th, 2011, 02:08 PM
http://www.dol.gov/dol/topic/wages/wagestips.htm

A tipped employee engages in an occupation in which he or she customarily and regularly receives more than $30 per month in tips. An employer of a tipped employee is only required to pay $2.13 per hour in direct wages if that amount combined with the tips received at least equals the federal minimum wage. If the employee’s tips combined with the employer’s direct wages of at least $2.13 per hour do not equal the federal minimum hourly wage, the employer must make up the difference. Many states, however, require higher direct wage amounts for tipped employees.

It is said that one should tip in a restaurant or barber shop because tipped employees do not have to be paid minimum and rely on tips to make a living. However, by law if a tipped employee's wage and tips do not add up to minimum wage then the employer must make up the difference. Therefore, is it acceptable not to tip or would not tipping put them at risk of being fired because of their employers regularly having to make up the difference?

Unlucky_Leprechaun
July 10th, 2011, 02:25 PM
If you get good service? Yes... I mean they are still providing a service....I mean you can argue the grocery clerk, bank teller, or fast food service person is as well, but they aren't carrying your food to the table, listening to people b*tch about the food not being cooked right, or its cold...I admire some of them actually. I think that if most people get good service, they will continue to tip

TheMatrix
July 11th, 2011, 04:02 AM
http://www.dol.gov/dol/topic/wages/wagestips.htmA tipped employee engages in an occupation in which he or she customarily and regularly receives more than $30 per month in tips. An employer of a tipped employee is only required to pay $2.13 per hour in direct wages if that amount combined with the tips received at least equals the federal minimum wage. If the employee’s tips combined with the employer’s direct wages of at least $2.13 per hour do not equal the federal minimum hourly wage, the employer must make up the difference. Many states, however, require higher direct wage amounts for tipped employees.

It is said that one should tip in a restaurant or barber shop because tipped employees do not have to be paid minimum and rely on tips to make a living. However, by law if a tipped employee's wage and tips do not add up to minimum wage then the employer must make up the difference. Therefore, is it acceptable not to tip or would not tipping put them at risk of being fired because of their employers regularly having to make up the difference?
I did not understand any of that. Care to elabourate?

ShyGuyInChicago
July 11th, 2011, 08:12 AM
I did not understand any of that. Care to elabourate?

When I say make up the difference, if a tipped employee does not get enough tips, then their employer has to give them extra money so that they can make minimum wage.

HaydenM
July 11th, 2011, 09:27 AM
I am from Australia and here nobody ever tips, but our employers pay us much more that 2.13 per hour. Kids still in school get paid about 10-12 AUD an hour as a starting wage.

ShyGuyInChicago
July 12th, 2011, 04:06 PM
I am from Australia and here nobody ever tips, but our employers pay us much more that 2.13 per hour. Kids still in school get paid about 10-12 AUD an hour as a starting wage.

That is far more than minimum wage in America.

http://www.google.com/search?sourceid=chrome&ie=UTF-8&q=10+aud+in+usd

http://www.google.com/search?sourceid=chrome&ie=UTF-8&q=10+aud+in+usd#sclient=psy&hl=en&source=hp&q=12+aud+in+usd&pbx=1&oq=12+aud+in+usd&aq=f&aqi=g-v1&aql=undefined&gs_sm=e&gs_upl=59055l59359l0l2l2l0l0l0l0l347l502l0.1.0.1l2&bav=on.2,or.r_gc.r_pw.&fp=c306e119a7d85f91&biw=1366&bih=643

HaydenM
July 14th, 2011, 07:42 AM
That is far more than minimum wage in America.

http://www.google.com/search?sourceid=chrome&ie=UTF-8&q=10+aud+in+usd

http://www.google.com/search?sourceid=chrome&ie=UTF-8&q=10+aud+in+usd#sclient=psy&hl=en&source=hp&q=12+aud+in+usd&pbx=1&oq=12+aud+in+usd&aq=f&aqi=g-v1&aql=undefined&gs_sm=e&gs_upl=59055l59359l0l2l2l0l0l0l0l347l502l0.1.0.1l2&bav=on.2,or.r_gc.r_pw.&fp=c306e119a7d85f91&biw=1366&bih=643

yeh I have friends getting over $14 AUD an hour working at maccas and kfc.

Hope4u
July 14th, 2011, 11:53 AM
I think I would always tip..as long as the service was good..you're just supposed to

User Deleted
July 14th, 2011, 02:09 PM
I say no. Why let the masses tip the employer. If all tips are divided and spread among all employees and the employer it would be okay. But that is not how it works is it. So again no.

skater94
July 14th, 2011, 02:42 PM
Many restaurants automatically include tips in the bill, you don't have much of choice eh?
Otherwise, tip when the service is good.

Schizothemia
July 15th, 2011, 07:46 PM
Fun fact about the origin of Tips. Tips is an acronym for: To Insure Prompt Service. They were initially provided at the beginning of the meal so a server would provide service for the customer quickly, however it was abused, and the transition occurred that tips were payed after the meal, allowing the customer to determine the value of the service they were given.

As to why individuals in the service industry lose out on base pay simply because they recieve tips, doesn't make sense to me. They should recieve minimum wage because they are providing a service and without them the restaurant wouldn't be able to thrive really. Tips should be an incentive for the hard working individual serving the tables.

As for whether one should not tip, I think it's a case by case basis. If the server provides you with bad service, they don't deserve the incentive, clearly they don't care enough about the job to try and provide satisfactory service. This helps an employer determine who the efficient employees are since they would know who isn't getting good tips and therefore is ultimately costing them money and customers. This helps promote healthy competition amongst staff and overall I don't see too many issues with it (although this does work under the idea that the economy isn't totally down the drain.)

You should however tip someone who has provided you with good service, just out of courtesy. I think a person deserves a little bonus if they were quick with getting orders, checking up on the table often etc.